David Cavazos looks on and smiles as the Santa Ana City Council votes to hire him as city manager Monday. Cavazos comes to Santa Ana after serving as city manager of Phoenix, AZ. He will be Santa Ana's first latino city manager.

David Cavazos thanks the Santa Ana City Council for voting to hire him as city manager Monday. Cavazos comes to Santa Ana after serving as city manager of Phoenix, AZ. He will be Santa Ana's first latino city manager.

David Cavazos, left, and Mayor Miguel Pulido sign contracts as the Santa Ana City Council looks on Monday. The council voted to hire Cavazos as city manager. He comes to Santa Ana after serving as city manager of Phoenix, AZ. He will be Santa Ana's first latino city manager.

David Cavazos, Phoenix city manager, at work in this 2011 photo. In October, he'll start work as Santa Ana's next city manager.

David Cavazos, city manager of Phoenix, was hired as Santa Ana's next city manager.

David Cavazos, left, and Mayor Miguel Pulido shake hands after signing contracts as the Santa Ana City Council looks on Monday. The council voted to hire Cavazos as city manager. He comes to Santa Ana after serving as city manager of Phoenix, AZ. He will be Santa Ana's first Latino city manager.

SANTA ANA – On the night that the Santa Ana City Council voted to hire David Cavazos as the next city manager, the audience cheered at the announcement that he’d be living in Santa Ana.

When he moves into town, Cavazos will get a housing allowance to make the move from Phoenix more affordable.

Cavazos, whose salary will place him among Orange County’s highest paid city managers, will receive $315,000 in annual base salary the first year. With benefits, including a housing allowance, the first-year cost of his contract is expected to be $558,625.

Council members said it will be money well spent, given Cavazos’s success in turning around Phoenix’s financial situation and his experience running a much larger city. He has been city manager there since 2009, and brings more than 25 years of municipal experience to Santa Ana.

“He’s qualified, motivated and he implemented successful policies in his city,” said Mayor Pro Tem Sal Tinajero. “We see this expenditure as an investment. He will put us on a better fiscal path. He’ll be able to bring in new tax revenue and new investment. That is what he brings. We have someone who has rubbed elbows with the right people. This is a game changer.”

“We get what we pay for,” said Councilwoman Michele Martinez. “This man’s qualifications are impeccable.”

COST RUNDOWN

Fur the first year of his contract, Cavazos, 53, will receive reimbursement of up to $3,000 a month for temporary housing in Santa Ana. Once he closes on a new Santa Ana residence, Cavazos will receive a $2,000 a month housing allowance. He’ll also get up to $7,500 in moving expenses.

The city will also provide Cavazos with a car, including fuel and maintenance costs. Other provisions call for deferred compensation, eligibility for a performance bonus starting next fiscal year, and other benefits, including medical insurance, vacation, retirement and the like.

If terminated, Cavazos would receive a lump sum payment equal to his base salary, unless he’s terminated for cause, such as commission of a crime or failure to follow a council directive.

“I am not leaving Phoenix for the money; my salary will remain the same,” Cavazos said in a statement. “Rather, I am going for the opportunity. I have accepted this position because I’m excited to build upon the successes in Santa Ana.”

The three-year contract, with automatic renewals, will become effective Oct. 21, when Cavazos starts. According to a city report, the estimated second-year cost of the agreement is $515,395 and $515,895 in the third. The City Council approved the contract Monday on a 6-0 vote, with one member absent.

A 2010-2011 grand jury report found that city managers countywide received an average of $207,808 in base salary, plus $73,891 in benefits, or $281,699 total. A dozen received $300,000-plus in total compensation.

According to data provided to the Santa Ana City Council, city manager salaries in Anaheim and Irvine are $279,636 and $255,792 a year, respectively. They’re closest to Santa Ana in terms of size, and city manager salary than any other Orange County city. The council also looked at base city manager salaries outside the county, such as Riverside and Long Beach.

CHANGEOVER

The city’s transition from former City Manager Paul M. Walters to Cavazos has had its costs.

Walters succeeded David Ream, a longtime city manager who retired in 2011. Walters, the city’s police chief, first served as interim city manager, and then last year was appointed to the permanent position.

Walters resigned, effective Feb. 1, after a 6-1 vote by the City Council to begin the process of releasing him from his contract.

Under terms of the agreement he struck with the city, Walters will serve as Santa Ana’s law enforcement liaison for a year. He got $264,999 in one-year base salary, and with other costs, the total came to $706,396.85.

The City Council in February approved a contract with interim City Manager Kevin O’Rourke, who was expected to serve about six to nine months while the city recruited a permanent top executive. Under terms of his agreement, he gets a $22,083 monthly salary. O’Rourke, of Fairfield, also gets travel expenses and use of a city car. Assuming O’Rourke works eight months, that’s a total of $176,664 in salary.

Also, the city paid $25,000 to Bob Murray and Associates to assist with the recruiting process. The City Council received 64 applications, picking Cavazos from six finalists.

Residents on both sides of the fight over whether to retain Walters or let him go are hoping for the best.

“I don’t know the guy,” said Santa Ana business owner Cherie Kerr, who argued before the council eight months ago for keeping Walters. “Maybe he’s great and a fabulous planner and manager. I shouldn’t judge him. The whole thing was unnecessary. We didn’t need the disruption…We have potholes to fill and other things to do, and we don’t need to thousands of dollars on craziness.”

“It is a lot of money, I have to agree,” said resident Albert Castillo, who argued for terminating Walters. “I do know that Santa Ana does need a lot of help. I hope that the money that it’s costing to repair Santa Ana is well worth it, all the money that’s being used. It’s our tax money.”

GIVE AND TAKE FROM MONDAY’S MEETING

When they were moving toward ending the tenure of former city manager Walters, Santa Ana City Council members brought up a number of concerns.

Included among them were what they saw as deference to the mayor on the part of staff, at the expense of the other six members. They also contended that Mayor Miguel Pulido pushed for Walters’ appointment when a national search recruiting effort should have been completed.

Their comments at Monday’s vote to appoint Cavazos as the next city manager carried some reminders of the political battle over Walters.

“There’s some of us up here that didn’t want to go through this process,” Councilwoman Martinez said, “and I thought it was very important that we went through a nationwide process because the city of Santa Ana deserves the best city manager possible.”

Mayor Pro Tem Tinajero expressed his gratitude to his City Council colleagues, mentioning the five who voted with him against Walters by name in his thank-you. Back in January, Pulido fought the effort to dismiss Walters, but joined in the 6-0 vote for Cavazos.

“When we made the decision to reach higher, it wasn’t easy,” Tinajero said. “I’m glad that our mayor is coming along and sees the greatness that we’ve been able to attract to the city of Santa Ana.”

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